Buying a Portland Investment Property? 2023 will be a Golden Year of Opportunity

buy portland real estate investment

According to National Association of Realtors’ lead market analyst, Lawrence Yun, predicts prices will be flat (dropping in some areas) in 2023, but they are expected to rebound 10% or more in 2024.

In other words, 2023 might be a golden opportunity to buy into the Portland, Oregon real estate market that is currently dropping in price.

Portland Multi-Family Opportunities

Opportunities abound in the local Portland market, starting with price drops in multi-family housing for sale. (Click the link to see the latest price drops.)

One might think that rents are down, given the vast number of multi-family homes for sale in Portland right now, and their many, many price drops. But that simply isn’t the case. Rents are high and are likely to stay that way.

For many years now, it has been nearly impossible to pick up a multi-family plex in Portland and instantly cash flow. That is no longer the case. The deals I’m seeing the market right now have potential for immediate cash flow after acquisition.

The below chart represents current average rental rates in Portland, Oregon.

Zillow.com

Portland Fix and Flip (or Hold) Opportunities

Also, the number of cheap fixer homes for sale has dramatically risen. We have a program that complies a smart list of fixer-upper homes for sale.

Finding fixer homes for under $150 a sq. ft. is now an easy possibility (it hasn’t been for years in our market). We’re even seeing fixer homes under $100 a sq. ft. in some cases.

We have a list of fixer homes for sale, sorted by lowest price per sq. ft. here.

Portland Foreclosure and Short Sale Opportunities

What hasn’t risen yet is foreclosure and short sale opportunities. Those might be coming in the near future, but they might not materialize at all. If prices rebound as fast as 2024, like NAR predicts, then the recent market downtown is unlikely to result in many new foreclosure or short sale opportunities for investors. See the current state of Portland’s foreclosure and short sale market here.

If you want to pick up one of the few abandoned available, we have a guide to assist you in purchasing them, whether your trying to pick up one you noticed in your neighborhood, at an auction, or live on the market.

Assumable Loan or Rehab Loan Opportunities

Getting financing, of course, is one of the toughest hurdles to jump over if you want to invest and don’t have all of the cash available, or don’t want to pursue a “hard money” style loan. Assumable loans are out there, as low as 2% in some cases! They’re hard to find as a member of the public, but we can sort all available homes through an assumable loan filter with our MLS membership to send you opportunities. Read our recent article on assumable loans to find out more. Also if you want to know your rehab loan options, check out our article here. Rehab loans might have a higher cost than traditional mortgages, but they are way cheaper than hard money loans.

Know what types of Homes Sell Faster and For More in Portland

A huge section of our reporting on this real estate site, revolves around local market research into what types of homes sell faster and for more per sq. ft. in our metro than others. If your serious about investing in Portland real estate, you should know! The section is here, title, What Causes a Home to Sell for More, and we have a number of new research projects coming out soon, so we recommend keeping an eye on it. To sign up for our real estate news and reports monthly digest by email, go here.

Work with a Top, Investor Savvy, Portland Buyers Agent

Kami Price, Realtor has been helping buyers pick up investment properties since 2004 in the greater Portland metro area. There are very, very few buyers agents more experienced and knowledgeable about the local real estate market than her. I highly recommend setting a no obligation appointment with her team and discussing your plans. Give her team a call at 503-773-0000 or chat with the bot on this site.

December 5, 2022
AUTHOR

Stephen FitzMaurice

Stephen FitzMaurice, Realtor is a top 5% real estate agent in the U.S. A Principal Broker in Oregon, Managing Broker in Washington, he has been licensed since 2003 for residential real estate sales. Call his team in Oregon at 503-714-1111 or in Washington at 360-345-3833.

4% max to sell a home in Portland and SW Washington.
4.25% max to sell a home in Salem and Bend.
Over 2,000 homes sold.